N&P savings account
Type: e-saver account.
Description: Norwich and Peterborough Building Society has launched a new e-saver account, paying 2 per cent net and 2.5 per cent AER.
N&P claimed the online savings account has eschewed “headline-grabbing” short-term bonus rates and complicated conditions, and is suitable for all savers, regardless of how much they would like to set aside.
Conditions: Can be opened by new and existing customers with a £1 deposit online, or by an initial cheque deposit. Withdrawals and deposits can be made with no penalties.
Verdict: Alistair Cunningham, financial planning director of Surrey-based Wingate Financial Planning, said: “It is not a bad rate but it could be better. This could be used when Isa allowance has been used up, but for that I would go for a rate of 3 per cent and above.
“To get a higher rate then you usually need to lock cash in. But for one year, technically people should not need that instant access. Cash should be the emergency funds, but an account with relatively good access for a better interest rate is a good way to go.
“We work with the clients to see what they want, but most people are generally all right to lock cash up for 12 months so we look at those accounts with a better rate.”